Discover the cutting-edge companies fueling the next generation of national security.
Modern defense isn’t just about tanks and missiles anymore. Today’s battlefield is digital, autonomous, and orbiting the Earth at 17,000 miles per hour. From AI-powered surveillance drones to next-gen satellite systems and cyber warfare tools, a new class of defense innovators is quietly reshaping the global security landscape—and creating serious wealth in the process.
While headlines focus on the biggest players, savvy investors are looking deeper.
In this report, we reveal 5 under-the-radar defense stocks that are tapping into powerful long-term trends—companies at the intersection of cutting-edge tech and national security. Whether you’re a cautious beginner or a seasoned investor looking for your next asymmetric play, these are the names worth researching now.
1. Voyager Technologies (NYSE: VOYG)
The “Space Arsenal” You’ve Never Heard Of
Voyager is a next-generation aerospace and defense innovator, helping shape the future of orbital infrastructure and national security. In a landmark move, the company recently secured a $217.5 million NASA contract to develop the Starlab space station, in collaboration with Airbus and Palantir.
With government and military demand growing for sovereign space capabilities, Voyager is uniquely positioned at the crossroads of civil, commercial, and defense space.
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Why it may be worth researching:
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Voyager’s successful IPO raised $382.8 million, signaling strong investor confidence in its defense and space technology offerings.
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The company’s $179.2 million backlog as of March 2025 suggests strong near-term demand.
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What to watch:
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Progress on the Starlab space station project and involvement in the $175 billion “Golden Dome” missile defense system.
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Follow-on defense and space contracts in 2025 and beyond.
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Bonus insight: With major partners and a first-mover advantage in commercial defense space, Voyager could emerge as a foundational name in orbital security.
2. AeroVironment Inc. (NASDAQ: AVAV)
The Drone Innovator Flying Below Wall Street’s Radar
AeroVironment is a leader in unmanned aircraft systems (UAS), offering lightweight and lethal solutions like the Switchblade drone—already used in live combat across Ukraine. With a growing international footprint and new product lines like the autonomous Red Dragon™, the company is doubling down on innovation.
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Why it may be worth researching:
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Strong return to profitability with $0.19 EPS in Q4 2025 after prior-year losses.
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Red Dragon™ demonstrates its capability in AI-driven, GPS-denied combat systems.
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What to watch:
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Contracts with NATO and other allies eager to expand drone capabilities.
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Expansion into non-lethal drone use for surveillance and ISR missions.
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Bonus insight: AeroVironment’s compact solutions are ideal for modern warfare scenarios—low cost, high impact, and easy to scale.
3. Crane Company (NYSE: CR)
Powering the Defense Sector’s Nuclear Backbone
Crane builds the high-precision infrastructure that makes nuclear submarines, jets, and naval systems work. Its products might not be flashy, but they’re essential. With a fresh acquisition of Precision Sensors & Instrumentation, Crane is leaning hard into the future of defense nuclear power.
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Why it may be worth researching:
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The acquisition is expected to generate $390M in revenue in 2025 alone.
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Q1 earnings jumped 24% year-over-year on strength in aerospace orders.
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What to watch:
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Integration and synergies from the Baker Hughes division.
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How the global re-embrace of nuclear energy affects defense suppliers like Crane.
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Bonus insight: Crane’s stability and dividend potential make it attractive for investors looking for long-term exposure to defense growth without the volatility.
4. L3Harris Technologies (NYSE: LHX)
The Secure Comms Giant With a Growth Catalyst
L3Harris specializes in high-security battlefield communications and electronic warfare systems—vital components of any modern military force. Whether it’s jamming enemy signals or delivering secure data streams, L3Harris is in the thick of it.
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Why it may be worth researching:
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A five-year, $587M contract for jamming pods from the U.S. Navy adds long-term revenue visibility.
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Nearly $1B in additional IDIQ contracts for secure communication platforms with U.S. and coalition forces.
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What to watch:
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Delivery progress on key Navy and NATO contracts.
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Defense budget growth in Europe and Asia where demand is spiking.
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Bonus insight: Analysts currently see LHX as undervalued—offering possible upside as contract execution ramps up in 2025.
5. Kratos Defense & Security Solutions (NASDAQ: KTOS)
The “X-Factor” Innovator in Autonomous Warfare
Kratos builds what the Pentagon calls “attritable” systems—affordable, unmanned platforms that can fight alongside or instead of traditional hardware. Think stealth drones, satellite networks, and missile defense tools engineered for speed and cost-efficiency.
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Why it may be worth researching:
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A $59.3M contract for BQM-177A aerial targets shows its bread-and-butter is in high demand.
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Partnership with GE Aerospace to develop advanced propulsion systems puts it on the cutting edge.
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What to watch:
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Expansion into hypersonics and missile intercept systems.
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New drone platforms tested by the Air Force and DARPA.
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Bonus insight: Kratos is lean and built for speed—ideal for a defense sector hungry for rapid innovation at scale.
The defense industry is undergoing a massive transformation—from boots-on-the-ground hardware to satellite constellations, digital warfare, and autonomous weapon systems. And behind that transformation are companies like these: agile, inventive, and often overlooked by Wall Street.
Whether you’re looking for growth, resilience, or long-term themes aligned with national priorities, these 5 stocks offer a compelling entry point into the future of defense. They aren’t just stocks—they’re stories of innovation, security, and opportunity.
Do your own research—but don’t ignore the trend. Defense is evolving fast. And these names could be leading the charge.
Disclaimer
This content is for informational purposes only and should not be construed as investment advice. The companies mentioned are examples of potential research opportunities and are not endorsements or recommendations to buy or sell any security. Investing involves risk, including the possible loss of principal. Always do your own due diligence and consult with a licensed financial advisor before making any investment decisions.
